Beijing goes all out to build global consumer hub
China’s capital plans to improve major commercial areas using innovation and digital technology
China’s capital Beijing will carry out campaigns to promote the construction of a fashionable shopping city; a “food capital” sampling global flavors and cuisines; a world-class tourism destination featuring traditional culture and modern civilization; and a benchmark for digital and innovative consumption, said Sun Yao, deputy head of the Beijing Commerce Bureau.
The city has vowed to build itself into an international consumption center, in a bid to play a role in the dual-circulation development pattern, promote high-quality development and better meet people’s growing needs for a better life.
The goal was set in an annex to the city government work report, which was delivered by Mayor Chen Jining, at the fourth session of the 15th Beijing Municipal People’s Congress held in January.
Sun said the campaigns will involve 10 aspects, such as building new commercial landmarks; attracting new brands; developing digital consumption; and promoting consumption in culture, tourism, sports, education, healthcare and exhibition.
Beijing, for example, will boost the integration of commerce, tourism, culture, science and technology at the time-honored Wangfujing commercial street. It set its sights on the global market as early as 2014 by organizing the first Wangfujing International Brand Festival.
The commercial street, with clearer positioning in recent years, has attracted a batch of international brands. They include many luxury names like Cartier, Hermes, Van Cleef & Arpels, Chanel and Rolex. These brands have forged unique advantages in their related categories in Wangfujing, industry insiders said.
“In the past two years, Wangfujing has conducted many projects featuring flagship stores of international brands, time-honored brands and traditional Beijing culture,” said Wang Fei, a senior official with the global real estate consultancy Jones Lang LaSalle.
“Some stores have been renovated and upgraded for better services and outlook, and to bring a more diversified experience to consumers,” Wang added.
The city is to rely on China Central Mall, China World Mall, SKP Beijing department store and other commercial complexes to cultivate an international business cluster capable of generating 100 billion yuan ($15.48 billion) in annual retail sales.
New moves
To create new commercial areas is also a focus of the campaigns. Beijing plans to establish a number of high-quality consumption facilities centering on Universal Studios Beijing, the latest theme park and resort of a global chain, which is expected to open soon.
The park, located in Tongzhou district, has attracted much attention since construction began because it is likely to become a major attraction in the capital and an important amusement park project in China.
“Universal Studios will serve as a new landmark in Beijing’s cultural and tourism consumption. Based on it, Tongzhou will build a demonstration area for the integrated development of culture, tourism and commerce,” said Dong Minghui, deputy head of the district.
Dong said multifunctional cinemas, high-quality catering and branded stores that integrate Chinese and Western characteristics have been arranged along the urban avenue of the theme park.
Also, tourism and leisure commercial streets will be built around the park, introducing restaurants, bars, family leisure and other supporting facilities.
Digital transformation
Beijing will also encourage timehonored enterprises to innovate business models and accelerate digital transformation.
Cheng Xu, deputy general manager of the century-old shoemaker, Neiliansheng Shoes, said time-honored brands should pay more attention to e-commerce, short videos and live broadcasts, which are key to realizing digital marketing.
Digital management can also improve operational efficiency by saving energy and reducing costs, he added.
In addition to time-honored brands, the capital has been making efforts to attract domestic and international brands to open their first stores and flagship stores in Beijing.
In September last year, the city’s commercial bureau issued a series of preferential policies to encourage brands to open their first stores.
Official statistics show 207 first stores, including national flagship stores, opened in Beijing in the first quarter, registering an explosive growth compared to the same period of 2020.
They include two Asian flagship stores and 18 first stores on the Chinese mainland. Also, a group of brands, including Roaringwild, T9, Harry Winston and Diptyque, will open their first stores in Beijing soon.
As a key way to boost economic growth and enabling industries to improve quality and efficiency, digital platforms provide support for Beijing’s construction of an international consumption center, local officials said.
The city plans to realize full 5G network coverage in key commercial clusters by 2022 by stepping up the construction of related infrastructure.
It will also promote new digital consumption scenarios, like smart stores and smart streets; support the research and application of new products, such as intelligent connected vehicles; and develop intelligent manufacturing, customer to manufacturer and other models of the digital economy.
Salient advantages
Building international consumption centers has been written into China’s 14th Five-Year Plan (2021-25) and the country’s 2035 long-term development goals.
Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges, said it is the right time for China to push forward the construction of international consumption centers. This is because it can boost consumption and promote economic recovery quickly in the post-pandemic era.
At the beginning of this year, more than 20 cities in China set off a boom in building international consumption centers. They include Beijing.
According to Wei, China will have five to 10 international consumption centers in the next five years. They are not only in coastal areas but in central and western regions, and even close to the western border of the country, such as Urumqi, Chengdu and Kunming.
“Beijing’s biggest advantage lies in cultural heritage,” Wei said. “The city has competitive hardware conditions. It has favorable policies designed for its free trade zone, especially in terms of taxation. It also leads the country in improving the business environment.
“Therefore, if Beijing gives full play to its cultural heritage, that will provide strong support for the construction of an international consumption center.”